EL7.AI
StocksMedium•20 October 2026•
4 min read

Japan to invest up to $21 billion in two New York chip plants operated by GlobalFoundries

Key Facts

1Japan plans to invest up to $21 billion in two chip plants operated by GlobalFoundries in New York.
2The first plant is expected to add about 900000 silicon wafers measuring 300 millimeters in diameter annually at full operation.
3The amendment to U.S. support includes reallocating $955 million to silicon photonics, silicon germanium and advanced packaging technologies.
4The U.S. government is taking a 4% stake under a separate agreement, bringing its total ownership to about 7%, according to the chief executive.

Japan plans to invest up to $21 billion in two planned semiconductor plants in New York state that will be operated by GlobalFoundries, according to Reuters. The company was selected to provide technology and operating expertise for the project in Malta under the U.S.-Japan initiative announced in October 2026. Japan will provide the investment needed to build the plants, while GlobalFoundries will handle technology and operations. Chief Executive Tim Breen told Reuters that initial customers include Japan's Renesas and Apple. The expansion aims to add chipmaking capacity in the United States, with its expected impact extending to manufacturing and construction jobs in New York.

The first plant is expected to add about 900000 silicon wafers annually to U.S. manufacturing capacity when fully operational, according to The National. The silicon wafers the plant will process will measure 300 millimeters in diameter, as part of the planned additional capacity. On employment, the project is expected to generate about 27000 jobs in construction and the surrounding ecosystem, according to Investing. Projections also include more than 1000 manufacturing jobs in New York state's Capital Region. Employment opportunities linked to the project thus extend to building the facilities and related activities, alongside jobs within manufacturing operations themselves.

Alongside the Japanese investment, the U.S. government is taking a 4% stake in GlobalFoundries under a separate agreement, Breen told Reuters. The agreement would bring the U.S. government's total ownership in the company to about 7%. Mubadala remains the controlling shareholder, with its filing with the U.S. Securities and Exchange Commission showing beneficial ownership of 72.82% as of June 30, 2026. An amendment to the U.S. CHIPS program grant includes the reallocation of $955 million, according to Investing. The funds will be directed toward accelerating investments in silicon photonics, silicon germanium and advanced packaging at facilities in New York and Vermont.

Senator Chuck Schumer's office previously announced a preliminary agreement in February 2024 to provide GlobalFoundries with $1.5 billion in funding through the U.S. CHIPS program. The agreement came amid expansion plans in Malta and Vermont, according to a statement from the office. The statement described the company as a "trusted foundry for the Department of Defense," referring to its role in supplying semiconductors to the defense sector. It also noted that the company serves the artificial intelligence, aerospace and automotive industries, alongside its defense-related business. The statement named Lockheed Martin and General Motors among its partners, linking its manufacturing activity to customers in the defense industries and U.S. vehicle manufacturing.

In another expansion of its Malta operations, GlobalFoundries announced a $2 billion agreement with Taiwan Semiconductor Manufacturing Company, according to earlier coverage by The National in October 2026. Under the agreement, the company will supply silicon interposers that help chips communicate on logic boards. The partnership has an initial term of 5 years, according to Investing, with a framework allowing production capacity to expand as demand grows. Services provided by the Malta facility support the Taiwanese company's advanced packaging ecosystem. The agreement adds to GlobalFoundries' investments in packaging technologies covered by the amendment to U.S. support in New York and Vermont.

In trading on the day the two-plant project was announced, GlobalFoundries shares rose 4.9% by 10 a.m. Eastern time on October 14, 2026, according to The National. The industrial projects will be implemented over the coming years, with volume production under the Taiwanese company's Malta agreement expected to begin ramping up in the first half of 2028, according to Investing. The Associated Press expects the first plant under the Japanese initiative to open in 2029. According to the agency, about $10 billion is earmarked to accelerate construction of that plant. Another roughly $10 billion will fund the second plant under the planned New York expansion.